Issue - meetings

To provide a verbal response to the letter from the Department for Levelling Up, Housing and Communities (DLUHC) (enclosed). Response to be provided by the Chief Finance Officer (PSPS).

Consideration was given to the Position Statement in response to DLUHC letter.

The following position statement was provided by the Chief Finance Officer (PSPS):

EY were the Council’s current external auditors and their contract was due to come to an end on 31 March 2024.  Following a national procurement exercise, KPMG were appointed as the external auditors from 1 April 2024.

The 2020/21 audit was completed by 22 March 2022 and had been finalised and published.

The 2021/22 accounts were presented to the Governance and Audit Committee on 16 March 2023, and were almost complete.  Delegated authority had been given to the S151 Officer and the Chairman of the Committee to approve the accounts if no material changes arose.  Since the accounts were presented, there had been two changes that had occurred:

·       Alternative presentation of PSPS within the accounts – changed from joint operation to group (it was felt this was a presentational change rather than a material change)

·       HRA asset revaluation (this was a material change)

Matters awaiting further clarification:

·       Pensions valuation - as a result of the triennial review a revised report had been requested from the actuary.  This was received last week and an outcome of the review (if material or not) was awaited. The 2021/22 accounts could not be closed until this issue was resolved.

The 2022/23 accounts were currently being produced and it was anticipated that the audit of those statements would commence later in the calendar year.  It was EY’s intention to complete that audit before 31 March 2024.

It was noted that all external audit firms had experienced a number of challenges regarding staff retention, skills and experience of undertaking Local Authority audits.  This, combined with increased regulatory scrutiny has led to delays with the completion of the audit of the statement of accounts.

AGREED:

That the Position statement in response to the DLUHC letter be noted.